The Croatian oil company INA achieved a net profit of 296 million kuna in the first half of this year, which is half, or more precisely 53 percent less than the same time last year when the net profit amounted to 630 million kuna, according to data from INA’s consolidated financial results report published today.
Net sales revenue of the INA group increased by 4 percent in the first half of this year, amounting to 11.19 billion kuna. The increase is mainly the result of increased sales volumes (8 percent for refinery products, 13 percent for natural gas, and 32 percent for crude oil (sales from the INA Group)), which was offset by lower average selling prices for refinery products and crude oil, as well as a weaker US dollar against the kuna compared to the first half of last year, INA explains. They also emphasize that the limitation of charging the maximum price according to the formula for calculating retail prices of petroleum products (‘price cap’ limitation) “negatively affected the result in the first half of 2007 by 67 million kuna.”
According to the report data, INA recorded a 9 percent increase in sales revenue in the domestic market in the first half of the year, reaching 7.48 billion kuna, while sales revenue in the foreign market decreased by 5 percent to 3.71 billion kuna. Data from the income statement also show a 2 percent increase in INA’s revenue from core activities to 11.72 billion kuna, but also a faster increase in operating expenses, by 4 percent, to 11.23 billion kuna. Thus, INA’s operating profit in the first half of this year is 27 percent lower than at the same time last year – the operating profit amounted to 488 million kuna, while it was 668 million kuna at the same time last year.
